What Makes an Insurance Plan HSA Eligible?

Health Savings Accounts (HSAs) are a great way to save for medical expenses while enjoying tax benefits. But not all insurance plans qualify for an HSA. So, what makes an insurance plan HSA eligible?

For an insurance plan to be HSA eligible, it must meet certain criteria:

• The plan must be a High Deductible Health Plan (HDHP), as defined by the IRS.
• The plan must have a minimum deductible amount set by the IRS each year.
• The plan must have a maximum out-of-pocket limit set by the IRS each year.

These criteria ensure that individuals with an HSA-eligible plan have a high deductible to pay before their insurance kicks in, while also providing protection from catastrophic medical expenses.

It's important to carefully review the details of your insurance plan to determine if it qualifies for an HSA. Consulting with a financial advisor or insurance provider can help you understand your options and make the most of your HSA benefits.

Health Savings Accounts (HSAs) are a smart financial tool, but not all insurance plans are created equal. To be eligible for an HSA, an insurance plan needs to classify as a High Deductible Health Plan (HDHP), which means it has a higher deductible than typical plans, giving you the opportunity to save for future medical expenses.